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October 24, 2018

A Discussion on Twitter

This is a super legitimate point.
Just about every major QSR chain in the publicly traded universe has unloaded nearly all of their stores on franchisees. And then they discount the hell out of the menu even as labor costs skyrocket.

Jonathan Maze added,

Barbarian Capital@BarbarianCap

Replying to @BarbarianCap@jonathanmaze

and what really irks me is that there is a borderline fraudy element: you induce franchisees to sign up based on certain profitability expectations, and then you keep slamming them w discounts

1 comment:

Anonymous
said...

As long as they live off of the top line they will keep discounting to get a bump in sales regardless of it being profitable or not for the operator. If they were on a fixed rent they wouldn't be doing it.